RPC, Inc. Reports Second Quarter 2025 Financial Results And Declares Regular Quarterly Cash Dividend

, /PRNewswire/ -- RPC, Inc. (NYSE: RES) ("RPC" or the "Company"), a leading diversified oilfield services company, announced its unaudited results for the second quarter ended June 30, 2025. Non-GAAP and adjusted measures, including adjusted revenues, adjusted operating income, adjusted net income, adjusted earnings per share (diluted), EBITDA and adjusted EBITDA, adjusted EBITDA margin, and free cash flow are reconciled to the most comparable GAAP measures in the appendices of this earnings release. Sequential comparisons are to 1Q:25. The Company believes quarterly sequential comparisons are most useful in assessing industry trends and RPC's recent financial results. Both sequential and year-over-year comparisons are available in the tables at the end of this earnings release. Second Quarter 2025 Highlights The Company acquired Pintail Completions ("Pintail"), effective April 1, 2025; Pintail is a leading wireline perforation service provider to blue chip customers in the Permian Basin Revenues increased 26% sequentially to $420.8 million with the inclusion of Pintail. Excluding the $98.9 million in revenues generated by Pintail, adjusted revenues decreased 3% sequentially Net income was $10.1 million, down 16% sequentially, and diluted Earnings Per Share (EPS) was $0.05; Net income margin decreased 120 basis points sequentially to 2.4% Adjusted net income, was $17.5 million, up 46% sequentially, and adjusted diluted Earnings per Share (EPS) was $0.08; Adjusted net income margin increased 60 basis points sequentially to 4.2% Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) was $65.6 million, up 34% sequentially; Adjusted EBITDA margin increased 90 basis points sequentially to 15.6%. Management Commentary "Downhole tools, coiled tubing, and rental tools all generated sequential revenue increases during the quarter. Wireline revenues benefited from the incorporation of our acquisition of Pintail effective April 1st. Pintail brings significant scale, a blue chip customer base and builds on RPC's diversified portfolio of companies." stated Ben M. Palmer, RPC's President and Chief Executive Officer. "The second quarter results were negatively impacted by our pressure pumping service line as we experienced weaker activity and pricing pressure along with impacts from weather, external non-productive time and customer startup delays during the quarter." "The oilfield services market remains challenged by lower commodity prices and macro uncertainties. The diversified service lines, customer base, and geographies across our company provided resiliency during the quarter. Our business leaders have responded to this difficult environment by focusing on efficiencies and cost improvements, passing on increased supplier costs, where possible, and utilizing our balance sheet to opportunistically invest in the business. Competition continues to be intense, but we will remain disciplined focusing on full cycle returns." Selected Industry Data (Source: Baker Hughes, Inc., U.S. Energy Information Administration) 2Q:25 1Q:25 Change % Change 2Q:24 Change % Change U.S. rig count (avg) 571 588 (17) (2.9) % 603 (32) (5.3) % Oil price ($/barrel) $ 64.74 $ 71.93 $ (7.19) (10.0) % $ 81.78 $ (17.04) (20.8) % Natural gas ($/Mcf) $ 3.20 $ 4.14 $ (0.94) (22.7) % $ 2.07 $ 1.13 54.6 % 2Q:25 Consolidated Financial Results (sequential comparisons versus 1Q:25) Revenues were $420.8 million, up 26%. Revenues for pressure pumping, the Company's largest service line, were down 18%, while all other service lines, excluding Pintail's wireline, increased. Within the Technical Services segment, pressure pumping remained the most challenged, impacted by weather, non-pumping non-productive time and customer startup delays that created unexpected white space, particularly in the month of June. Coiled tubing and downhole tools saw the biggest organic increases versus the prior quarter outside of wireline. Within the Support Services segment, rental tools had a 17% sequential increase during the quarter. Cost of revenues, which excludes depreciation and amortization of $36.6 million, was $317.7 million, up from $243.9 million. These costs increased 30% during the quarter. The increase was primarily due to the addition of Pintail offset in part by lower pressure pumping activity and change in job mix. Selling, general and administrative expenses were $40.8 million, down from $42.5 million; as a percent of revenues, SG&A decreased 310 basis points to 9.7% due to a reduction in employment cost related items and SG&A cost leverage from Pintail's revenue contribution. Acquisition related employment costs were approximately $6.6 million during 2Q:25 and represent non-cash accounting adjustments related to the Pintail acquisition that are contingent upon continued employment. Acquisition related employment costs totaling $78.6 million are expected to be recognized equally over 12 quarters, representing the contingent service periods. Interest income totaled $1.6 million, down from the previous quarter, reflecting reduced cash balances after the Pintail acquisition. Interest expense totaled $1.0 million, up from the previous quarter as a result of the seller note issued in conjunction with the Pintail acquisition. Income tax provision was $7.2 million, or 41.3% of income before income taxes. The effective tax rate was unusually high mainly due to the Acquisition related employment costs which contributed to a lower pre-tax income and are largely non-deductible. Net income and diluted EPS were $10.1 million and $0.05, respectively, versus $12.0 million and $0.06, respectively, in 1Q:25. Net income margin decreased 120 basis points sequentially to 2.4%. Adjusted net income and adjusted diluted EPS were $17.5 million and $0.08, respectively, versus $12.0 million and $0.06, respectively, in 1Q:25. Adjusted net income margin increased 60 basis points sequentially to 4.2%. Adjusted EBITDA was $65.6 million, up from $48.9 million, due primarily to the contribution from the Pintail acquisition. Adjusted EBITDA margin increased 90 basis points sequentially to 15.6%. Balance Sheet, Cash Flow and Capital Allocation Cash and cash equivalents were $162.1 million at the end of the second quarter, with no outstanding borrowings under the Company's $100 million revolving credit facility. Net cash provided by operating activities and free cash flow were $92.9 million and $17.6 million, respectively, year-to-date through 2Q:25. Payment of dividends totaled $17.5 million year-to-date through 2Q:25. Additionally, the Board of Directors declared a regular quarterly cash dividend of $0.04 per share, payable on September 10, 2025, to common stockholders of record at the close of business on August 11, 2025. Share repurchases totaled $2.9 million year-to-date through 2Q:25 all of which related to tax withholding for restricted stock vesting. Segment Operations (sequential comparisons versus 1Q:25) Technical Services performs value-added completion, production and maintenance services directly to a customer's well. These services include pressure pumping, downhole tools, wireline, coiled tubing, cementing, and other offerings. Revenues were $396.8 million, up 27% Operating income was $21.1 million, up 51% Results were driven primarily by the addition of Pintail Support Services provides equipment for customer use or services to assist customer operations, including rental tools, pipe inspection services and storage. Revenues were $24.1 million, up 14% Operating income was $4.6 million, up 74% Results were driven by higher activity in rental tools and the fixed-cost nature of these service lines Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, (In thousands) 2025 2025 2024 2025 2024 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues: Technical Services $ 396,754 $ 311,844 $ 341,484 $ 708,598 $ 697,878 Support Services 24,055 21,033 22,669 45,088 44,108 Total revenues $ 420,809 $ 332,877 $ 364,153 $ 753,686 $ 741,986 Operating income: Technical Services $ 21,123 $ 14,003 $ 30,198 $ 35,126 $ 62,154 Support Services 4,639 2,661 4,379 7,300 7,978 Corporate expenses (5,871) (5,804) (2,447) (11,675) (6,867) Acquisition related employment costs (6,554) — — (6,554) — Gain on disposition of assets, net 2,199 1,526 3,338 3,725 4,552 Total operating income $ 15,536 $ 12,386 $ 35,468 $ 27,922 $ 67,817 Interest expense (1,007) (131) (99) (1,138) (333) Interest income 1,618 3,395 3,343 5,013 6,308 Other income, net 1,152 885 732 2,037 1,499 Income before income taxes $ 17,299 $ 16,535 $ 39,444 $ 33,834 $ 75,291 Conference Call Information RPC, Inc. will hold a conference call today, July 24, 2025, at 9:00 a.m. ET to discuss the results for the quarter. Interested parties may listen in by accessing a live webcast in the investor relations section of RPC, Inc.'s website at www.rpc.net. The live conference call can also be accessed by calling (888) 440-5966, or (646) 960-0125 for international callers, and using conference ID number 9842359. For those not able to attend the live conference call, a replay will be available in the investor relations section of RPC, Inc.'s website beginning approximately two hours after the call and for a period of 90 days. About RPC RPC provides a broad range of specialized oilfield services and equipment primarily to independent and major oilfield companies engaged in the exploration, production and development of oil and gas properties throughout the United States, including the Gulf of America, mid-continent, southwest, Appalachian and Rocky Mountain regions, and in selected international markets. RPC's investor website can be found at www.rpc.net. Forward Looking Statements Certain statements and information included in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements that look forward in time or express management's beliefs, expectations or hopes. In particular, such statements include, without limitation: our belief that our acquisition of Pintail Completions brings a scaled and high-quality company into our portfolio; our belief that Pintail's strong Permian operations are driven by a blue chip customer base and a highly regarded management team; our belief that Pintail builds on RPC's diversified portfolio of companies; our belief that the oilfield services market is challenged; our belief that the diversified service lines, customer base, and geographies across our company provide resiliency; our belief that our business leaders have responded to the difficult environment by focusing on efficiencies and cost improvements by passing on increased supplier costs and utilizing our balance sheet to opportunistically invest in the business; our belief that we can pass increased supplier costs to customers; our belief that competition continues to be intense; and our belief that we will remain disciplined and focused on returns. Risk factors that could cause such future events not to occur as expected include the following: the price of oil and natural gas and overall performance of the U.S. economy, both of which can impact capital spending by our customers and demand for our services; business interruptions due to adverse weather conditions; changes in the competitive environment of our industry; political instability in the petroleum-producing regions of the world; the actions of the OPEC oil cartel; our customers' drilling and production activities; the risk that our assessments, such as regarding the oversupplied nature of oilfield services, will turn out incorrect; and our ability to identify and complete acquisitions and/or other strategic investments or transactions. Additional factors that could cause the actual results to differ materially from management's projections, forecasts, estimates, and expectations are contained in RPC's Form 10-K for the year ended December 31, 2024. For information about RPC, Inc., please contact: Joshua Large,Vice President, Corporate Finance and Investor Relations(404) 321-2152[email protected] Michael L. Schmit, Chief Financial Officer(404) 321-2140[email protected] RPC INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2025 2025 2024 2025 2024 (Unaudited) (Unaudited) (Unaudited) (Unaudited) REVENUES $ 420,809 $ 332,877 $ 364,153 $ 753,686 $ 741,986 COSTS AND EXPENSES: Cost of revenues (exclusive of depreciation and amortizationshown separately below) 317,746 243,895 262,284 561,641 538,893 Selling, general and administrative expenses 40,825 42,499 37,406 83,324 77,491 Acquisition related employment costs 6,554 — — 6,554 — Depreciation and amortization 42,347 35,623 32,333 77,970 62,337 Gain on disposition of assets, net (2,199) (1,526) (3,338) (3,725) (4,552) Operating income 15,536 12,386 35,468 27,922 67,817 Interest expense (1,007) (131) (99) (1,138) (333) Interest income 1,618 3,395 3,343 5,013 6,308 Other income, net 1,152 885 732 2,037 1,499 Income before income taxes 17,299 16,535 39,444 33,834 75,291 Income tax provision 7,151 4,505 7,025 11,656 15,405 NET INCOME $ 10,148 $ 12,030 $ 32,419 $ 22,178 $ 59,886 EARNINGS PER SHARE Basic $ 0.05 $ 0.06 $ 0.15 $ 0.10 $ 0.28 Diluted $ 0.05 $ 0.06 $ 0.15 $ 0.10 $ 0.28 WEIGHTED AVERAGE SHARES OUTSTANDING Basic 220,610 215,691 214,844 218,150 214,922 Diluted 220,610 215,691 214,844 218,150 214,922 RPC INCORPORATED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) June 30, December 31, 2025 2024 (Unaudited) ASSETS Cash and cash equivalents $ 162,113 $ 325,975 Accounts receivable, net 303,353 276,577 Inventories 117,701 107,628 Income taxes receivable 1,305 4,332 Prepaid expenses 13,917 16,136 Retirement plan assets 31,489 — Other current assets 12,031 2,194 Total current assets 641,909 732,842 Property, plant and equipment, net 560,936 513,516 Operating lease right-of-use assets 24,801 27,465 Finance lease right-of-use assets 5,886 4,400 Goodwill 93,206 50,824 Other intangibles, net 107,135 13,843 Retirement plan assets — 30,666 Other assets 30,523 12,933 Total assets $ 1,464,396 $ 1,386,489 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Accounts payable $ 132,360 $ 84,494 Accrued payroll and related expenses 29,931 25,243 Accrued insurance expenses 8,375 7,942 Accrued state, local and other taxes 6,514 3,234 Income taxes payable 5,171 446 Unearned revenue — 45,376 Current portion of operating lease liabilities 7,185 7,108 Current portion of finance lease liabilities and finance obligations 4,290 3,522 Retirement plan liabilities 23,772 — Current portion of notes payable 20,000 — Accrued expenses and other liabilities 5,364 4,548 Total current liabilities 242,962 181,913 Accrued insurance expenses 13,587 12,175 Retirement plan liabilities — 24,539 Note payable 30,000 — Operating lease liabilities 18,432 21,724 Finance lease liabilities 1,156 559 Other long-term liabilities 12,827 9,099 Deferred income taxes 54,417 58,189 Total liabilities 373,381 308,198 STOCKHOLDERS' EQUITY Common stock 22,062 21,494 Capital in excess of par value — — Retained earnings 1,071,483 1,059,625 Accumulated other comprehensive loss (2,530) (2,828) Total stockholders' equity 1,091,015 1,078,291 Total liabilities and stockholders' equity $ 1,464,396 $ 1,386,489 RPC INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Six Months Ended June 30, 2025 2024 (Unaudited) (Unaudited) OPERATING ACTIVITIES Net income $ 22,178 $ 59,886 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 77,970 62,337 Acquisition related employment costs 6,554 — Working capital (14,824) 56,524 Other operating activities 1,065 5,740 Net cash provided by operating activities 92,943 184,487 INVESTING ACTIVITIES Capital expenditures (75,323) (127,799) Proceeds from sale of assets 9,496 8,883 Purchase of business, net of cash and debt assumed (165,656) — Net cash used for investing activities (231,483) (118,916) FINANCING ACTIVITIES Payment of dividends (17,478) (17,203) Repayment of debt assumed at acquisition (4,502) — Cash paid for common stock purchased and retired (2,868) (9,858) Cash paid for finance lease and finance obligations (474) (304) Net cash used for financing activities (25,322) (27,365) Net (decrease) increase in cash and cash equivalents (163,862) 38,206 Cash and cash equivalents at beginning of period 325,975 223,310 Cash and cash equivalents at end of period $ 162,113 $ 261,516 Non-GAAP Measures RPC, Inc. has used the non-GAAP financial measures of adjusted revenues, adjusted operating income, adjusted net income, adjusted earnings per shar, adjusted EBITDA, adjusted EBITDA margin and free cash flow in today's earnings release. These measures should not be considered in isolation or as a substitute for performance or liquidity measures prepared in accordance with GAAP. Management believes that presenting these non-GAAP measures enables investors to compare the operating performance of our core business consistently over various time periods, and in the case of Adjusted EBITDA, without regard to changes in our capital structure. Management believes that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use in evaluating RPC's liquidity. Free cash flow should be considered in addition to, rather than as a substitute for, net cash provided by operating activities as a measure of our liquidity. Additionally, RPC's definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, management believes it is important to view free cash flow as a measure that provides supplemental information to our Condensed Consolidated Statements of Cash Flows. Adjusted measures that exclude revenues and costs related to Pintail's performance allow for period to period comparison of our core, pre-acquisition business. A non-GAAP financial measure is a numerical measure of financial performance, financial position, or cash flows that either 1) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of operations, balance sheet or statement of cash flows, or 2) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. Set forth in the appendices below are reconciliations of these non-GAAP measures with their most directly comparable GAAP measures. These reconciliations also appear on RPC, Inc.'s investor website, which can be found at www.rpc.net. Appendix A (Unaudited) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, (In thousands) 2025 2025 2024 2025 2024 Reconciliation of Operating Income to AdjustedOperating Income Operating income $ 15,536 $ 12,386 $ 35,468 $ 27,922 $ 67,817 Add: Acquisition related employment costs 6,554 — — 6,554 — Adjusted operating income $ 22,090 $ 12,386 $ 35,468 $ 34,476 $ 67,817 Appendix B (Unaudited) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, (In thousands) 2025 2025 2024 2025 2024 Reconciliation of Net Income to Adjusted Net Income Net income $ 10,148 $ 12,030 $ 32,419 $ 22,178 $ 59,886 Adjustments: Add: Acquisition related employment costs, before taxes 6,554 — — 6,554 — Add: Tax effect of Acquisition related employment costs 802 — — 802 — Total adjustments, net of tax 7,356 — — 7,356 — Adjusted net income $ 17,504 $ 12,030 $ 32,419 $ 29,534 $ 59,886 (Unaudited) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2025 2025 2024 2025 2024 Reconciliation of Diluted Earnings Per Share to AdjustedDiluted Earnings Per Share Diluted earnings per share $ 0.05 $ 0.06 $ 0.15 $ 0.10 $ 0.28 Adjustments: Add: Acquisition related employment costs, before taxes 0.03 — — 0.03 — Add: Tax effect of Acquisition related employment costs — — — — — Total adjustments, net of tax 0.03 — — 0.03 — Adjusted diluted earnings per share $ 0.08 $ 0.06 $ 0.15 $ 0.13 $ 0.28 Weighted average shares outstanding (in thousands) 220,610 215,691 214,844 218,150 214,922 Appendix C (Unaudited) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, (In thousands) 2025 2025 2024 2025 2024 Reconciliation of Net Income to EBITDA and Adjusted EBITDA Net income $ 10,148 $ 12,030 $ 32,419 $ 22,178 $ 59,886 Adjustments: Add: Income tax provision 7,151 4,505 7,025 11,656 15,405 Add: Interest expense 1,007 131 99 1,138 333 Add: Depreciation and amortization 42,347 35,623 32,333 77,970 62,337 Less: Interest income 1,618 3,395 3,343 5,013 6,308 EBITDA $ 59,035 $ 48,894 $ 68,533 $ 107,929 $ 131,653 Add: Acquisition related employment costs 6,554 — — 6,554 — Adjusted EBITDA $ 65,589 $ 48,894 $ 68,533 $ 114,483 $ 131,653 Revenues $ 420,809 $ 332,877 $ 364,153 $ 753,686 $ 741,986 Net income margin(1) 2.4 % 3.6 % 8.9 % 2.9 % 8.1 % Adjusted EBITDA margin(1) 15.6 % 14.7 % 18.8 % 15.2 % 17.7 % (1) Net income margin is calculated as net income divided by revenues. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by revenues. Appendix D (Unaudited) Six Months Ended June 30, (In thousands) 2025 2024 Reconciliation of Operating Cash Flow to Free Cash Flow Net cash provided by operating activities $ 92,943 $ 184,487 Capital expenditures (75,323) (127,799) Free cash flow $ 17,620 $ 56,688 SOURCE RPC, Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

RPC, Inc. Reports Second Quarter 2025 Financial Results And Declares Regular Quarterly Cash Dividend

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